The group, which is headed by South African-born Marius Kloppers, is expected to make more than £20bn in 2011, beating the £14bn record set by Shell in 2007.

BHP has reaped the benefits of commodity prices that have doubled over the last year in the case of copper, while iron ore and aluminium are up 50%.

Flush with cash, the company is increasing its share buyback programme from £2.6bn to £6.2bn. Kloppers has been under pressure from shareholders to return money to investors rather than splash out on a big acquisition.

BHP, which is listed on the London and Australian stock exchanges, has failed to clinch three big deals in the last three years, angering some investment institutions. Its latest failure was its aborted attempt to buy Potash Corporation of Canada last year, following opposition from the Canadian government. That cost the multinational nearly £200m in fees and related expenses.

Pressed on whether BHP was still looking for a big acquisition, Kloppers said large assets "were few and far between," and the asking prices were invariably too high. Instead, he launched a £50bn capital expenditure programme over the next five years, to develop new mines and expand existing ones. But he could not "rule out" a mega deal, if the right opportunity came along. Major new projects coming on stream involve iron ore, an essential component for making steel, and coal.

Observers say that Kloppers is still looking for deals, however, and possible targets include Anadarko Petroleum and Woodside Petroleum.

BHP is optimistic on the short term outlook for the global economy, "given the continuation of robust growth in emerging markets and further positive signs of a sustainable recovery in major developed economies such as the United States".

Despite the danger of inflation in China, Kloppers is optimistic that the Chinese authorities can "contain the situation" by curbing loan growth and possibly hiking interest rates. He expects demand for commodities to remain strong.